Aussie man went from ‘having nothing’ to $20 million

This Aussie lost everything at 17 but went on to build a $20m company, and he says most of us are making this surprising money mistake.

When he was just 17-years-old, devastation struck the lives of Sydney resident Kobi Simmat and his family.

A recession hit and his father’s business went under, leaving the family homeless. It was an unimaginable time that he has vowed to never go through again.

“In the ‘recession we had to have’ my dad’s business suffered significantly, mainly due to clients not paying for work he had done and it sent our family broke,” Kobi told news.com.au.

“We ended up homeless. To say it was a difficult time is an understatement.”

Kobi, now a married 48-year-old father-of-one, worked hard to ensure that he never went through that experience again, and ended up growing something extraordinary out of nothing – a $20 million company.

“I built and sold one of Australia’s most successful management consulting companies called Best Practice. I can’t divulge what the company sold for but I can say we had it independently valued a few years prior to that sale at roughly $20 million,” he said.

He now lives on Sydney’s affluent Northern Beaches, and is a business coach and entrepreneur, as well as an author, speaker and host of the podcast Talking Business. Aiming to help keep others out of financial distress, he's penned a book to guide the way, How to Build a Business Others Want to Buy.

“I hope my book can help to prevent this in other businesses,” he said. “I’d hate for another 17-year-old boy to go through what I did.”

As a teenager, Kobi dealt with the tough times by knuckling down in an attempt to find a way back to brighter days – and financial security.

“I dealt with it by putting my head down, working hard, and taking control of both my own finances and implementing a strong business model when I started my own company,” he said.

Kobi Simmat has penned a book to help others. Picture: Kobi Simmat

“We only did work from that point if we had been paid in advance. It’s a cash positive business model.”

He said he worried about the past repeating itself, however he has worked hard to implement strategies to prevent this from happening.

“I think about it every day,” Kobi reflects. “Even now that I’ve achieved what many would say is success I worry about history repeating itself. So I tackle that thinking with the mantra ‘you only fail if you stop’.

“I’ll outwork anyone on any timeline and I couple that with ensuring I’m only offering products or services that people want to buy. I still put in the hard work, day after day, persistently focused on my goals. In times of recession if you are struggling you need to pivot to goods and services that are essential for everyday life.”

Kobi was homeless at age 17. Picture: Kobi Simmat

What’s more, Kobi said the focus should be on savings – and most of us have our strategies all wrong.

“I live off what money I have left after I’ve put away my savings,” he said. “I save first and spend last. Many people I coach unfortunately have this the wrong way around. They save what’s left after bills.

“If that’s the case then restructure your personal expenses, find a cheaper car, house, lifestyle. Go slow now to go fast later. If you don’t have the money in the bank in cold hard cash to buy something special – then don’t.”

Kobi has a range of successful strategies in growing wealth. Picture: Kobi Simmat

However, he said when it comes to your house – and in some cases business – that may be OK.

“My only exception to this is your home. There are great capital gains tax advantages in owning your own home in Australia so a home loan is OK. Of course good debt in business is OK, but only if you have massive customer demand already and the good debt helps you expand and service your expanding customer demand.”

When it comes to success, Kobi found that tried and tested methods are better than the latest technology.

“Write lists with a pen on paper,” Kobi said. “Capture what you need to do. I have a day book. I write everything down I need to do. I pour over it a few times a day and complete as much as I can before I collapse exhausted at night.

“I’ve met a lot of very wealthy people over the years and not one of them uses a fancy app, or electronic task list. They all use pen and paper. It’s tactical, you can touch it, and you give yourself a chance to feel a sense of achievement when you tick really important hard-to-do stuff off your list.

Kobi recieving the Queen’s scout award at Government house just before becoming homeless. Picture: Kobi Simmat

A young Kobi. Picture: Kobi Simmat

“In thinking about the next six months, what does success look like? Write that down, map out the tasks you need to do to get there and get on with it.”

How about his most surprising piece of advice?

“Never take on investors. The best business funding you can get is from customers. It’s interest free and validates your business idea. If a customer pays you then you’re one step closer to success.

“Never take investment dollars from anyone. Start your business from scratch and boot strap. If you need funds run pre-sales with customers and deliver amazing service in return for their advanced support.”

Kobi Simmat has built a $20m business. Picture: Kobi Simmat

Also, never forget about your family.

“I’m having a gap year in 2024. Our farm needs some attention and I’m helping my son with his homework each day.”

Over the last 25 years Kobi has advised and consulted with over 15,000 companies in over seven countries and 50 different industries.